2026-01-01

EBA Opinion on Austria's Increase of the Sectoral Systemic Risk Buffer for Commercial Real Estate

The European Banking Authority issued an opinion on the Austrian Financial Markets Authority's proposal to raise the sectoral systemic risk buffer for commercial real estate exposures from 1% to 3.5%. The EBA does not object to this measure, acknowledging the significant increase in non-performing loans and systemic risks within Austria's CRE sector. The Authority also highlights the need for continued coordination to prevent regulatory overlaps with Pillar 2 requirements and the internal models output floor.

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European Banking Authority

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